Verification of Payee: What’s Changing for Your SEPA Transfers

Since 9 October, a new security mechanism called Verification of Payee (VoP) has been gradually applied to euro transfers within the SEPA area. Its principle is simple: before executing a transfer, your bank automatically checks whether the beneficiary’s name matches the IBAN entered. This control helps prevent input errors and reduces the risk of fraud involving the use of a falsified IBAN.

When a discrepancy is detected between the name provided and the one associated with the beneficiary’s account, an inconsistency alert is displayed. Depending on the bank, this alert may take different forms, such as “exact match,” “partial match,” or “no match.” The aim is to prompt you to verify the information before confirming your transfer. In most cases, the final decision to execute the payment remains in your hands.

 

What you need to do differently

With VoP, it becomes essential to use the beneficiary’s official and complete name as it appears on their banking documents. Nicknames, abbreviations, unregistered trade names, or approximate wording may trigger an alert. If in doubt, ask the beneficiary to confirm their exact information.

 

Update your beneficiary database

To reduce interruptions and notifications, it is recommended that you update your list of beneficiaries. Check that each name matches the one registered with the relevant bank. This task takes only a few minutes per beneficiary and will make your future transfers smoother.

 

A security benefit

Once your data is up to date, VoP becomes a useful tool: it helps you more easily identify typing errors or fraud attempts involving a modified IBAN. The transfer process remains quick, but gains in reliability.